- (Exam Topic 4)
When testing the accuracy of transaction data, which of the following situations BEST justifies the use of a smaller sample size?

1. A. The IS audit staff has a high level of experience.
2. B. It is expected that the population is error-free.
3. C. Proper segregation of duties is in place.
4. D. The data can be directly changed by users.

Correct Answer: B
The best situation to justify the use of a smaller sample size when testing the accuracy of transaction data is when it is expected that the population is error-free. This is because if the data is assumed to be error-free, then a smaller sample size can be used to confirm the accuracy of the data. It is important to note, however, that this does not replace the need for proper segregation of duties and other controls to ensure accuracy and integrity of the data.

- (Exam Topic 4)
Controls related to authorized modifications to production programs are BEST tested by:

1. A. tracing modifications from the original request for change forward to the executable program.
2. B. tracing modifications from the executable program back to the original request for change.
3. C. testing only the authorizations to implement the new program.
4. D. reviewing only the actual lines of source code changed in the program.

Correct Answer: A

- (Exam Topic 4)
When is it MOST important for an IS auditor to apply the concept of materiality in an audit?

1. A. When planning an audit engagement
2. B. When gathering information for the fieldwork
3. C. When a violation of a regulatory requirement has been identified
4. D. When evaluating representations from the auditee

Correct Answer: C

- (Exam Topic 4)
An organization is concerned with meeting new regulations for protecting data confidentiality and asks an IS auditor to evaluate their procedures for transporting data. Which of the
following would BEST support the organization's objectives?

1. A. Cryptographic hashes
2. B. Virtual local area network (VLAN)
3. C. Encryption
4. D. Dedicated lines

Correct Answer: C
The best option to support the organization's objectives of protecting data confidentiality when transporting data is encryption. Encryption is a process of encoding data so that it cannot be accessed or read by unauthorized parties. Encryption can be used to secure data in transit, ensuring that confidential data remains confidential and protected from unauthorized access. According to the ISACA CISA Study Manual, "encryption is the most effective way to achieve data security."

- (Exam Topic 4)
Transaction records from a business database were inadvertently deleted, and system operators decided to restore from a snapshot copy. Which of the following provides assurance that the BEST transactions were recovered successfully?

1. A. Review transaction recovery logs to ensure no errors were recorded.
2. B. Recount the transaction records to ensure no records are missing.
3. C. Rerun the process on a backup machine to verify the results are the same.
4. D. Compare transaction values against external statements to verify accuracy.

Correct Answer: B
Recounting the transaction records to ensure that no records are missing is the best method to provide assurance that the best transactions were recovered successfully. This is because it ensures that all of the records that were present in the database before the snapshot was taken have been restored successfully. Other methods such as reviewing transaction recovery logs, rerunning the process on a backup machine, or comparing transaction values against external statements are not as reliable as recounting the records, as they do not guarantee that all of the records have been restored correctly.